A formal reorganization offers the most effective solution to overcoming these financial challenges and is in the long-term best interest of both Goody's and its business partners.
Paul White, Goody's recently appointed Chief Executive Officer, stated, “While Goody's has a very successful 55-year heritage and we serve an important market niche, we have recently faced considerable challenges.
After careful analysis, we made the decision to restructure the business through a Chapter 11 filing in order to streamline operations, refocus on our core business, and strengthen our balance sheet so that Goody's is better positioned for the future.
Having been in retail for over 30 years, I am excited by the potential at Goody's and believe that by taking the right actions now, this business can move forward effectively.
We plan to close 69 underperforming stores, consolidate our distribution centers by closing one facility in Russellville, Arkansas, significantly reduce expenses, and create a more appropriate capital structure.
In turn, we believe that a strengthened Goody's will offer our vendors an excellent channel of distribution in desirable small to midsize markets and provide our customers with a greatly improved shopping experience based on appealing merchandise and strong customer service.
“The decision to close a large number of stores and further consolidate operations was a difficult one and we regret the impact that this will have on some of our employees. However, we believe these are necessary steps as we work to improve the business and return to profitability.
The Board and I would like to thank our employees, our vendors, and our customers for their ongoing support as we work to advance Goody's turnaround.
We are certain that we will emerge from this situation as a stronger and healthier company that will be well positioned to reach its full potential.”
Goody's Family Clothing Inc
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
